In cases of subrogation, against whom can an insurer recover costs?

In the context of subrogation, the insurer has the right to recover costs from the responsible third party. Subrogation is the legal process by which an insurer, after paying a claim to the insured, seeks to pursue recovery of that amount from the party that caused the loss. The rationale behind this process is to prevent the insured from receiving double compensation for the same loss, while also allowing the insurer to recoup the funds expended in settling the claim.

When a third party is deemed to be at fault for the incident that led to the claim, the insurer can step into the shoes of the insured and seek compensation from that third party. This mechanism is crucial in keeping insurance costs in check, as it helps ensure that the financially responsible party bears the burden of the loss rather than the insurer or by extension, the insurance policyholders. .

The other options involve entities that do not typically serve as responsible parties in the context of subrogation claims. For instance, the policyholder themselves has received compensation for their loss, making them the opposite of a party from whom the insurer would seek recovery. The insurance regulator has no role in the transaction between the insurer and the responsible party, and a claims management company is usually involved in the handling of